[DigitalToday reporter Yunseo Lee] Crypto infrastructure firm Galaxy Digital assessed the current market as a good time to buy and hold bitcoin.

On Oct. 27 (local time), blockchain media outlet CoinPost reported that Galaxy Digital research head Alex Thorn (알렉스 손) said on Oct. 22 that bitcoin has already passed its bottom and selling pressure has weakened.

Thorn said bitcoin selling pressure has retreated and the case for fiat currency debasement is strengthening. He also noted that bitcoin previously rose as high as $125,000 and said there is no reason it cannot reach that level again.

He cited technical trends along with on-chain and supply-demand changes. Bitcoin is holding its 200-week moving average, and its 50-week moving average has recovered for five consecutive weeks. Thorn said in four past instances where bitcoin traded below the 50-week line for more than 20 weeks and then recovered, it did not fall more than 8.4 percent below the recovery point over the following year.

He also pointed to post-halving performance as support for a bullish case. As of Oct. 22, bitcoin was 916 days past its halving, surpassing 777 days, 889 days and 912 days, which were the bottom points in the past three cycles. The amount of bitcoin that had not moved for more than five years also fell to a monthly average of 34,000 BTC in 2026 from a monthly average of 67,000 BTC in 2024.

He also cited the exit of short-term speculative money and the remaining base of medium- and long-term holders as bullish factors. In the CME bitcoin futures market, asset managers' net long positions fell 57 percent from their peak, and hedge funds' net short positions also declined about 57 percent. While bitcoin's price fell 53 percent, spot bitcoin exchange-traded fund holdings fell only 11 percent from a peak on Oct. 9, 2025 to a trough on July 13, 2026.

He also cited U.S. fiscal conditions as a factor favourable for bitcoin. Thorn said U.S. federal debt stands at $40.44 trillion, the fiscal deficit is $1.99 trillion, or 6.2 percent of gross domestic product, and annual interest costs amount to $1.28 trillion. He said rolling over roughly $40 trillion in debt at around a 5 percent interest rate while carrying a fiscal deficit of 6 percent of GDP increases inflation pressure. That could support the bitcoin investment thesis by reinforcing concern about fiat currency debasement, he said.

He also set out conditions for the bullish scenario to hold. Thorn cited as risk factors a failure to recover the 50-week moving average within one month after falling below it again, and spot ETF holdings dropping below the July trough of 1.22 million BTC. He also said bitcoin could face headwinds if a concrete timeline is presented for quantum computers that can decipher cryptography, or if U.S. fiscal conditions enter a phase of restoring soundness.

Artificial intelligence is also a variable. Thorn warned that AI could become a risk to the crypto market if it competes with bitcoin for fundraising, if AI-enabled hacking increases, or if the AI boom itself fades. Even if the bullish case for bitcoin holds, whether technical support levels, ETF holding trends and the macro fiscal environment are shaken at the same time is expected to be a key point to watch.